Currently rebuilding our FP&A tool (a Workday related one...). It works like a large Pivot table (once i get the rollups going well).
Do you formally set up the profit centers hierarchy? Do you sit down and formalise the product lines, product family, Business Unit? and then make sure all departments follow this? You say here is the structure...
Also, what are your thoughts on cost allocation methods? Allocating non-direct fixed overheads to product lines? And where this calculation should sit (Planning too; or the datalake)
Love the question and thanks for reading! Yeah, getting that data to flow naturally into your analytic tools makes a huge difference for the people who use them.
A few thoughts on your questions:
Make sure you get all of the FMD fields on the base data. That will make it pivotable without adding logic.
Establishing a system of record for profit center master data is critical. There’s usually a process for this (like new product introductions) where people already do this, so if you can tie into that process, you’ll synchronize the business. You can even go so far as to configure profit centers in your ERP system if the opportunity presents itself. But the concept itself helps you streamline your reporting.
For indirect cost allocations, the best practice (in my framework) is to allocate historical expenses (actuals) in the ERP system and forecasts in the planning tool or data platform. It’s okay to do both in the planning tool, but that makes it more challenging to preserve history and manage reorganizations.
I’ve written a few other articles on this, and I’ll probably write more, but if you’d like to talk through specific questions about your project, just direct message me here or on LinkedIn.
Nice!
Currently rebuilding our FP&A tool (a Workday related one...). It works like a large Pivot table (once i get the rollups going well).
Do you formally set up the profit centers hierarchy? Do you sit down and formalise the product lines, product family, Business Unit? and then make sure all departments follow this? You say here is the structure...
Also, what are your thoughts on cost allocation methods? Allocating non-direct fixed overheads to product lines? And where this calculation should sit (Planning too; or the datalake)
Love the question and thanks for reading! Yeah, getting that data to flow naturally into your analytic tools makes a huge difference for the people who use them.
A few thoughts on your questions:
Make sure you get all of the FMD fields on the base data. That will make it pivotable without adding logic.
Establishing a system of record for profit center master data is critical. There’s usually a process for this (like new product introductions) where people already do this, so if you can tie into that process, you’ll synchronize the business. You can even go so far as to configure profit centers in your ERP system if the opportunity presents itself. But the concept itself helps you streamline your reporting.
For indirect cost allocations, the best practice (in my framework) is to allocate historical expenses (actuals) in the ERP system and forecasts in the planning tool or data platform. It’s okay to do both in the planning tool, but that makes it more challenging to preserve history and manage reorganizations.
I’ve written a few other articles on this, and I’ll probably write more, but if you’d like to talk through specific questions about your project, just direct message me here or on LinkedIn.
Thanks!
Zane
Amazing thanks!!